International News 27/02
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Interest from overseas investors in Indian notes is on the rise.
Foreign investors are increasingly interested in Indian assets, particularly bonds. This interest has been fueled by JPMorgan Chase & Co's announcement that it will add Indian bonds to its global bond index in June 2024. Indian sovereign bonds are now highly sought after, with a surge in global investor involvement. Last year, Indian state institutions and supranational entities sold more rupee-denominated bonds, reaching a total of $3.2 billion, the highest in five years. Investors, including William Blair Investments and M&G Investments, are interested in supranational bonds issued by multilateral institutions. Additionally, these AAA-rated bonds provide exposure to Indian bonds without the need for a license. These bonds offer overseas investors several advantages, such as a disinflationary trend, prospects for inclusion in upcoming indices, and the ability to trade offshore without a 20% tax. Consequently, the yield on these bonds is higher compared to Singapore bonds.
https://internasional.kontan.co.id/news/minat-investor-luar-negeri-pada-surat-utang-india-meningkat
Warren Buffett has officially invested US$10.63 billion in five Japanese companies.Berkshire Hathaway, led by Warren Buffett, has raised its stake in five of Japan's largest trading companies, as per the company's annual report. The subsidiary of Berkshire Hathaway, National Indemnity Company, previously held approximately 7-8% in Mitsubishi Corp, Itochu Corp, Mitsui & Co, Sumitomo Corp, and Marubeni Corp. In June, the company applied for additional shares with the aim of maintaining a long-term stake and increasing it to 9.9%. The company purchased five shares for 1.6 trillion yen ($10.63 billion), with an expected investment value of 2.9 trillion yen by the end of 2023. This represents unrealized gains of 61% or $8 billion. The investment highlights Buffett's confidence in Japanese trading companies and his long-term investment strategy.